Chiara Bianchi
The FTX estate plans to auction off 22.3 million locked Worldcoin (WLD) tokens, currently valued at approximately $37.7 million, at a notable discount, according to three sources familiar with the matter. This sale is part of the estate’s ongoing efforts to recover funds for its creditors.
Prospective buyers must submit their bids for the WLD token auction by 8 PM ET on Wednesday. Two sources stated that bidders will be informed by Thursday if their offers are successful. The discount on these WLD tokens could range from 40% to 75% off their current market price, which stands at around $1.69, according to the same sources.
The estateโs 22.3 million WLD tokens will be sold in this auction, with no further auctions planned for these specific tokens, as per the two insiders. These tokens will gradually unlock on a daily basis until 2028. Specifically, 20,539 WLD tokens will unlock daily from December 1, 2024, through July 24, 2026. From July 25, 2026, through July 24, 2028, the daily unlock rate will drop to 13,689 tokens.
One of the sources, along with a separate fourth source, raised concerns about the extended lockup period for the WLD tokens, which could affect their attractiveness to buyers.
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Mike Cagney had previously spoken on the subject
Earlier this week, Figure Markets co-founder and CEO Mike Cagney mentioned on X (formerly Twitter) that the FTX estate was preparing to auction its WLD token holdings, suggesting the discount could be as high as 75%. Cagney also noted the gradual unlocking of the tokens through 2028 and indicated that Figure Markets might set up a fund to participate in the auction, much like it did for the FTX estateโs earlier Solana (SOL) auction.
The FTX estate has previously sold its holdings in SOL and Metaplex (MPLX) tokens, now shifting its focus to the WLD tokens. In May, the estate completed the sale of $7.5 billion in discounted Solana tokens, drawing interest from notable investors like Pantera Capital. Last month, crypto funds, including Pantera Capital and ParaFi Capital, purchased 62.6 million MPLX tokens from Wave Digital Assets, which were originally held by the FTX estate, as reported by PRIME.
Currently, the FTX estate has sold the majority of its tokens and holds around $594 million in remaining assets, according to Arkham data. However, a significant portionโapproximately $541 millionโis held in the form of FTX’s FTT token, which is highly illiquid and has been marked down to zero by the estate.
